For 2011 and 2012, there is an increase in the lifetime gift exemption from $1 million to $5 million. This allows high net worth families to utilize various planning tools to exempt a greater amount of their wealth. However, there is some ambiguity as to how the exemption will be applied in 2013 when the exemption limit returns to $1 milllion. Sandra L. Atkins and Helen L. Modly provide various strategies and cautionary warnings for those looking into taking advantage of the exemption.
See Sandra L. Atkins and Helen L. Modly, "Gift Giving Strategies for 2011 and 2012," MorningstarAdvisor (October 13, 2011).
Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal.
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